CUC: Fair or fraud?

It was with great interest that I read of CUC’s latest proposal to ask “bigger” users to pay for electricity “in advance.” I also noticed that former governor Froilan Tenorio considered it a “loan,” prohibited by several statutes.

I have observed this “advance” tactic on many previous occasions with other businesses in trouble and in many areas; it never works. What if some “bigger” users actually swallow the bait and make so-called “advance” payments to CUC? CUC will then spend the money immediately to buy fuel, pay debts or whatever else depending on how much money they rake in. But the power that is now already paid for must still be generated and given to those who paid in advance. Bottom line is CUC will have no additional income from these users until the “advance” is used up. So how will CUC propose to pay its newly acquired, on-going and future debts without as much income in the future? Simple answer is they can’t and will find themselves having dug their own graves even deeper—and quicker.

On top of that, they propose to give 12 percent “interest” on the advanced money. Where will the funds for that 12 percent come from? From you and me, of course! Imagine that: 12 percent! Please tell me where else anybody can earn 12 percent on their money these days? Banks pay around 1.5 percent, credit unions 2 or 3 percent, CDs 4 or 5 percent; Geez, even a really good stock investment is great to get 7 or 8 percent, and risky!

Even if all this were “legal” or even “ethical,” why is it restricted to “bigger” users only? I really want to get in on this action. One of my credit card issuers just sent me a “promotion” to borrow $20,000 at 2.99 percent until it’s paid off! I want to take that money, give it to CUC and make a nice profit of around 9 percent, too! Does that sound fair to all of you?

The proof of this pudding lies in where the big users will get the money that they will give to CUC. Do they have a million or so just lying around that they want to get a good return on? Or will these big users go out and borrow the money at low interest rates? Either way, these users will make a huge profit on the money—at our expense, and CUC’s demise will be just around the corner.

This just seems to me to be a nice little “insider” deal between CUC (the board) and a very limited “club” of “bigger” users. And that sounds to me more like a fraud than “good” business. I have written letters to our legislators and asked them to do everything in their power to prevent such ridiculous actions by CUC’s board. Some of them answered—and agree that there are still many innovative and realistic actions that CUC’s board is apparently unwilling to even consider. Now, CUC also wants an “emergency” rate hike! Haven’t they already put enough individuals and businesses on the ropes?

Now is the time to raise a public outcry against these outrageous and egregious actions. Especially in light of the fact that CUC (and the board) has done absolutely not one single thing nor devised even one single policy or program for dealing with their problems—not one. Well, maybe one: Ask the paying public to throw even more money at them!

Dr. Thomas D. Arkle, Jr.
San Jose, Tinian